Meredith Corp. has made a preliminary acquisition offer to Time Inc. that fell short of the price expectations of the publisher of Sports Illustrated and Fortune magazines, according to people familiar with the matter.

The gap in valuation expectations could represent a setback to Time Inc.’s efforts to sell itself. It comes after an investor group led by former music executive Edgar Bronfman Jr. abandoned its pursuit of Time Inc. in March, following a $1.8 billion offer it made late last year.

While Time Inc. is looking to sell itself for more than $20 per share, Meredith has so far made a preliminary offer with a price range that values it below that, the people said this week. The exact price range that Meredith has offered could not be learned.

Sources cautioned that Time Inc. is still willing to engage with Meredith in price negotiations, which have yet to kick off in earnest. Time Inc. has also been pursuing offers from other parties in what is sees as a competitive sale process, according to the sources.

Time Inc. shares dropped 4 percent to $18.20, giving the company a market value of around $1.8 billion. Meredith shares were down 1.8 percent to $63.20, valuing it at $2.8 billion.

An investment group led by private equity firm Pamplona Capital Management LP remains interested in Time Inc., but it also considers it unlikely that it can meet its price expectations, according to the sources.

The sources asked not to be identified because the sale process is confidential. Time, Meredith and Pamplona declined to comment.

An acquisition of Time Inc. would give Meredith the scale required to spin off its broadcasting arm into a standalone company. Many of Meredith’s competitors, from Tronc Inc. to Tribune Media Co., have shed their publishing operations following a drop in print advertising revenue.

Time Inc. has been weighing a sale of the company for the past several months amid a decline in earnings.